Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Billy and Akaisha Kaderli
On the South Shore of
Financial independence is that moment when
have enough invested assets
to live the lifestyle you want for the rest of your life. You can choose to
working or not, but you are no longer dependent on a paycheck to
live your lifestyle, or to cover your expenses.
Financial independence is freedom.
You are not chained to a job you dislike, a city or commute with too much traffic, or
the sort of weather that doesn’t suit you just to have a job to pay for your
When you are financially independent you can pursue your passions - like
travel, learning a musical instrument, inventing a product that can benefit
humanity, volunteer, hike, bike, write that book, mentor, pursue a spiritual
quest or do a myriad of other things on Your List of Life.
you are making enough money from your investments to cover your expenses,
relocate yourself in any number of paradises around the world. You can RV
across the continent,
sit around the globe, grow the perfect garden,
or learn a new language.
How to get there
We like to call it
Creating a Money Machine where your
invested money continues to grow ahead of inflation, even though you are drawing from it to
cover your expenses.
The best way to understand how much you will need to create this scenario is
to figure out
much you are spending today. Not how much you make by
working, but how much cash you are putting out to live your lifestyle.
Multiply that spending figure by 25. That is your target investment amount.
Assets vs. Income
Long before your retirement date it is important to structure your portfolio
towards growth as compared to income.
That’s not to say you cannot own
income producing investments such as bonds or REITS to balance your
portfolio, but ideally, those should be held in tax advantaged accounts such
as IRA’s so that the income is not currently taxed.
The rest of your portfolio, depending on your age, should be in low cost
growth ETF’s or mutual funds such as VTI, Vanguard Total Market. This way
your investments are structured in a more tax efficient manner.
I hear many stories of people well into retirement with annual incomes of 100K or
more who have to give a portion of that back to Uncle Sam for income taxes
each year. Then they fear inflation eating away at their spending power.
Equity assets will grow outpacing inflation thus keeping your purchasing
power intact and you are in control of taking capital gains if and when
This is important, especially if you are planning on decades of retirement
like we did.
The idea is that assets outperform inflation. Income does not.
It was our experience that our expenses dropped significantly once we left
the work force. Mind you, we
sold our home, invested the proceeds for
growth, and decided to travel. Doing this afforded us the opportunity of not
maintaining a residence while it sat empty for months or years while the
invested proceeds continued to grow. This freed us from property taxes,
insurance, and home repairs. We eventually became
Car-Free as well, so we no
longer had car insurance, repairs and maintenance, fuel costs, or anything
else related to supporting a vehicle as well as leaving more money invested
Financial independence eventually taught us that we needed little to be
happy, and we basically
became minimalists before it was fashionable.
This style of living may or may not appeal to you, but the point is when you
are financially independent, you can create whatever lifestyle best suits
you. You are the one in charge of your life and that is very freeing.
What's Your Number? - How much money do you need to retire?
About the Authors
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha